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Nordson Corporation Reports First Quarter Results

Nordson Corporation (Nasdaq: NDSN) today reported results for the first
quarter of fiscal year 2013. For the quarter ending January 31, 2013,
sales were $347 million, a 26 percent increase over the prior year's
first quarter sales. This sales improvement included an 8 percent
increase in organic volume, and an 18 percent increase related to the
first year effect of acquisitions. Currency effects were minimal in the
quarter compared to the prior year. Operating profit for the quarter was
$62 million and operating margin was 18 percent. First quarter diluted
earnings per share as reported were $0.65, representing a 12 percent
increase over the prior year earnings per share of $0.58. A
reconciliation of GAAP diluted EPS to normalized amounts is included in
the attached tables.

"Nordson's global team delivered solid quarterly results, in line with
our guidance and reflective of the normal seasonality of our business,"
said Nordson President and Chief Executive Officer Michael F. Hilton.
"Our continuing ability to provide precision technology solutions to
customers in a diverse set of end markets generated strong organic
volume growth, with additional growth coming from the first year effect
of acquisitions. Operating margin in the quarter was 18 percent, a level
within the range we expected and one that includes the dilutive impact
of recent acquisitions along with planned investments in initiatives
that will fuel future growth and performance. Net income grew to a first
quarter record of $42 million, we continue to generate excellent levels
of free cash flow, and our balance sheet remains strong. Overall, we are
pleased with the start of our fiscal year and we see multiple
opportunities for growth and improvement in the coming quarters."

First Quarter Segment and Regional Results

"The fundamental strengths of our business model are intact in all
business segments, as we delivered organic volume growth in every
geographic region and nearly all product lines," said Hilton.

"Volume in Adhesive
Dispensing Systems improved by 33 percent compared to the same
period a year ago," continued Hilton. "Organic volume growth was
essentially flat, as growth in consumer non-durable end markets was
offset by softness in some plastics processing and consumer durable
goods end markets. Segment operating margin was 24 percent and inclusive
of the anticipated dilutive effect of 2012's EDI and Xaloy acquisitions.

"Organic volume in Advanced Technology Systems improved by 8 percent
over the prior year's first quarter, with solid growth in most all
segment product lines. Demand in mobile electronic device, medical and
other niche end markets remained solid. Segment operating margin was 19
percent in the quarter, an improvement of 3 percentage points over our
performance in last year's first quarter.

"Within Industrial
Coating Systems, volume grew by 51 percent compared to the first
quarter a year ago. This improvement included a 38 percent increase in
organic volume and a 13 percent increase related to the first year
effect of acquisitions. Similar to our comments a quarter ago, the
growth continues to be driven by well-capitalized customers in all
geographies investing in production efficiency and plant expansion
programs. Segment operating margin was 13 percent, an improvement of 10
percentage points over last year's first quarter and reflective of our
ability to leverage increased volume."

Detailed results by operating segment and geography are included in the
attached tables.

Order Rates and Backlog

Order rates for the 12-week period ending February 17, 2013, measured in
constant currency, increased 4 percent over the same period a year ago.
Order rates by segment and geography are provided in the accompanying
financial tables, with pro-forma growth in order rates calculated as
though fiscal year 2012 acquisitions were owned in both years.

Backlog at the end of the first quarter was approximately $189 million,
an increase of 25 percent compared with the end of the first quarter a
year ago, and an increase of 7 percent compared to the end of the fourth
quarter of fiscal 2012. Backlog amounts are calculated at January 31,
2013 exchange rates.

Outlook

For the second quarter of fiscal 2013, sales are expected to be in the
range of $372 to $387 million. This sales outlook indicates growth will
be in the range of 18 percent to 23 percent compared to the second
quarter a year ago. This overall growth is inclusive of organic growth
of 3 percent to 8 percent, 16 percent growth from the first year effect
of acquisitions, and a negative 1 percent currency translation effect as
compared to the prior year's second quarter and based on the current
exchange rate environment. Diluted earnings per share are expected to be
in the range of $0.78 to $0.87.

"At the midpoint of our guidance, sequential sales growth would be about
10 percent, and we would expect to leverage this increased volume to
deliver higher operating margin. Our year-over-year order rates are
positive, but uncertainty persists in the macroeconomic picture, not
unlike the climate of a year ago. In that environment, Nordson generated
full year organic growth of 8 percent. At this time, most economists are
forecasting global GDP growth in 2013 to be similar to 2012. Should
these forecasts hold, we believe Nordson has the opportunity to generate
mid-to-high single digit full year organic growth once again. At this
level of growth, Nordson would be well positioned to deliver full year
operating margin similar to last year's level, inclusive of the dilutive
effect of last year's acquisitions and the incremental R&D and
localization investments we are making this year. We have proven our
ability to adjust to conditions as required, yet we are focused on
delivering long term returns to our shareholders. We remain well
positioned with a direct sales and service model in all geographies, and
our differentiated products meet the needs of customers in a wide
variety of global growth markets. Our efforts remain underpinned by a
commitment to innovation, continuous improvement, talent development and
execution."

Nordson will broadcast its first-quarter conference call on the investor
relations page of its Web site, www.nordson.com/investors,
on Friday, February 22, 2013 at 8:30 a.m. EST. For persons unable to
listen to the live broadcast, a replay will be available for 14 days
after the event. Information about Nordson's investor relations and
shareholder services is available from James R. Jaye, Director of
Communications & Investor Relations at (440) 414-5639 or Jim.Jaye@nordson.com.

Except for historical information and comparisons contained herein,
statements included in this release may constitute "forward-looking
statements," as defined by the Private Securities Litigation Reform Act
of 1995. These statements involve a number of risks, uncertainties and
other factors, as discussed in the company's filing with the Securities
and Exchange Commission that could cause actual results to differ.

Nordson Corporation delivers precision technology solutions that help
customers succeed worldwide. The company engineers, manufactures and
markets differentiated products and systems used for precision
dispensing of adhesives, coatings, sealants, biomaterials, fluids
and other materials, plastic
extrusion and injection
molding, electronics
testing and inspecting, and surface
preparation, all supported by application expertise and direct
global sales and service. Nordson serves a wide variety of consumer
non-durable, durable and technology end markets including packaging,
nonwovens, electronics, medical, appliances, energy, transportation,
construction, and general product assembly and finishing. Founded in
1954 and headquartered in Westlake, Ohio, the company has operations and
support offices in more than 30 countries. Visit Nordson on the web at www.nordson.com,
http://www.twitter.com/Nordson_Corp
or www.facebook.com/nordson.

NORDSON CORPORATION

FINANCIAL HIGHLIGHTS

(Dollars in thousands except for per-share amounts)

FIRST QUARTER PERIOD

Period Ending January 31, 2013

(Unaudited)

CONSOLIDATED STATEMENT OF INCOME

First Quarter

2013

2012

Net sales

$

347,043

$

275,836

Cost of sales

149,814

106,490

Selling & administrative expenses

135,665

112,859

Operating profit

61,564

56,487

Interest expense - net

(3,982

)

(1,849

)

Other income (expense) - net

(1,200

)

992

Income before income taxes

56,382

55,630

Income taxes

14,371

17,292

Net Income

$

42,011

$

38,338

Return on sales

12

%

14

%

Return on average shareholders' equity

24

%

27

%

Average common shares outstanding (000's)

64,273

65,065

Average common shares and common share equivalents (000's)

64,949

65,627

Per share:

Basic earnings

$

.65

$

.59

Diluted earnings

$

.65

$

.58

Dividends paid

$

.15

$

.125

CONSOLIDATED BALANCE SHEET

January 31

October 31

2013

2012

Cash and marketable securities

$

54,725

$

41,518

Receivables

281,730

324,563

Inventories

183,415

169,585

Other current assets

54,602

50,957

Total current assets

574,472

586,623

Property, plant & equipment

177,847

174,931

Other assets

1,065,665

1,067,961

$

1,817,984

$

1,829,515

Notes payable and debt due within one year

$

105,675

$

105,669

Accounts payable and accrued liabilities

186,705

238,015

Total current liabilities

292,380

343,684

Long-term debt

517,563

528,041

Other liabilities

293,612

288,020

Total shareholders' equity

714,429

669,770

$

1,817,984

$

1,829,515

Other information:

Employees

5,412

5,361

Common shares outstanding (000's)

64,499

64,257

NORDSON CORPORATION

FINANCIAL HIGHLIGHTS

(Dollars in thousands)

FIRST QUARTER PERIOD

Period Ending January 31, 2013

(Unaudited)

First Quarter

% Growth over 2012

SALES BY BUSINESS SEGMENT

2013

2012

Volume

Currency

Total

Adhesive dispensing systems

$

183,378

$

139,172

32.8

%

-1.0

%

31.8

%

Advanced technology systems

108,709

100,107

8.1

%

0.5

%

8.6

%

Industrial coating systems

54,956

36,557

50.9

%

-0.6

%

50.3

%

Total sales by business segment

$

347,043

$

275,836

26.2

%

-0.4

%

25.8

%

First Quarter

OPERATING PROFIT BY BUSINESS SEGMENT

2013

2012

Adhesive dispensing systems

$

43,674

$

47,227

Advanced technology systems

20,733

16,000

Industrial coating systems

7,161

1,138

Corporate

(10,004

)

(7,878

)

Total operating profit by business segment

$

61,564

$

56,487

First Quarter

% Growth over 2012

SALES BY GEOGRAPHIC REGION

2013

2012

Volume

Currency

Total

United States

$

111,304

$

75,202

48.0

%

-

48.0

%

Americas

27,687

20,199

37.1

%

-

37.1

%

Europe

94,635

86,583

9.0

%

0.3

%

9.3

%

Japan

35,596

30,035

26.2

%

-7.7

%

18.5

%

Asia Pacific

77,821

63,817

20.3

%

1.6

%

21.9

%

Total Sales by Geographic Region

$

347,043

$

275,836

26.2

%

-0.4

%

25.8

%

First Quarter

SELECTED SUPPLEMENTAL INFORMATION

2013

2012

Depreciation and amortization

$

13,049

$

7,969

Capital expenditures

$

7,524

$

8,644

Dividends paid

$

9,641

$

8,133

NORDSON CORPORATION

ORDER RATES FOR 12-WEEK PERIOD ENDING FEBRUARY 17, 2013

CHANGE FROM PRIOR YEAR

BUSINESS SEGMENT

% CHANGE

GEOGRAPHY

% CHANGE

Adhesive dispensing systems

-1%

United States

3%

Advanced technology systems

5%

Americas

4%

Industrial coating systems

19%

Europe

-7%

Japan

10%

Total

4%

Asia Pacific

15%

Total

4%

Notes:1. Numbers in this table are unaudited and exclude the
effects of currency movements.2. Pro-forma changes in order rates
were calculated as though 2012 acquisitions were owned in both years.

NORDSON CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

FIRST QUARTER PERIOD

Period Ending January 31, 2013

(Unaudited)

EARNINGS PER SHARE

First Quarter

2013

2012

Diluted EPS as reported (U.S. GAAP)

$

0.65

$

0.58

Short-term inventory purchase accounting adjustments

-

0.02

Severance and restructuring

0.01

0.01

Pension termination expense

-

0.01

Discrete tax items

(0.04

)

-

Diluted EPS as adjusted (Non-GAAP)

$

0.62

$

0.62

Adjusted EPS is not a measurement of financial performance under GAAP,
and should not be considered as an alternative to EPS determined in
accordance with GAAP. Management believes that EPS as adjusted to
exclude the items in the table above assist in understanding the results
of Nordson Corporation and facilitate comparability of results with
prior periods. Our calculation of this non-GAAP measure may not be
comparable to the calculation of a similarly titled measure reported by
other companies.